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California Employers Issuing W-2 or 1099 Must Revise Earned Income Tax Credit Notice

By Jonathan A. Siegel
  • December 12, 2016

For several years, California employers have been required to notify employees regarding the federal Earned Income Tax Credit. Beginning January 1, 2017, new California law (AB 1847) requires those same employers to also notify employees that they may be eligible for the California Earned Income Tax Credit (“EITC”).

The new law states that an employer must notify all employees that they may be eligible for the federal and the California EITC within one week (before or after) or at the same time that the employer provides an annual wage summary, including, but not limited to, a Form W-2 or a Form 1099, to any employee.

California employers should consider using the language on the availability of the federal and the California EITC specified in the new law in their notice to employees.

If you have any questions about this other workplace developments, please contact Jackson Lewis.

©2016 Jackson Lewis P.C. This material is provided for informational purposes only. It is not intended to constitute legal advice nor does it create a client-lawyer relationship between Jackson Lewis and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material. This material may be considered attorney advertising in some jurisdictions. Prior results do not guarantee a similar outcome.

Reproduction of this material in whole or in part is prohibited without the express prior written consent of Jackson Lewis P.C., a law firm that built its reputation on providing workplace law representation to management. Founded in 1958, the firm has grown to more than 900 attorneys in major cities nationwide serving clients across a wide range of practices and industries including government relations, healthcare and sports law. More information about Jackson Lewis can be found at www.jacksonlewis.com.

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